Tax Debt Resolution Services: DIY or Hire a Company
Some tax situations can easily be resolved by you while others are more complex and you should hire a tax resolution service or tax relief attorney for the best outcome. In general, using any type of professional tax resolution service or tax relief attorney will result in a better solution for you than if you tried to resolve complex tax problems on your own. This article includes a listing of both tax problems you can handle on your own as well as the types of tax problems that you should enlist the services of a professional.
Tax Problems You Can Handle Yourself
Some of the more common tax problems are situations which you can resolve on your own, without too much difficulty.These include:
- Unable to Pay Taxes in Full– if you have a tax liability which is greater than you can afford to pay all at once, but you can make payments over time – you can handle this problem on your own. If you owe $25,000 or less, you can request an installment agreement by filling out Form 9465.
- Didn’t File Taxes But Do Not Owe Money– if you haven’t filed your taxes but you don’t owe anything to the IRS, you can simply file your taxes and submit them late. If you need assistance, hire a tax preparer to help you gather the necessary information and get your taxes filed.
- Can’t File Taxes By the Due Date– if something has happened which is going to prevent you from filing your taxes by the due date, you can file for an extension. An IRS tax extension will grant you additional time to get your paperwork completed. Keep in mind, you are expected to still pay any taxes owed by the due date, or you will incur penalties and interest on the amount due until you pay it in full.
Tax Problems You Should Use a Tax Resolution Service to Fix
If you have other, more complicated tax problems than those mentioned above, it would be a good idea to use a tax resolution service or tax relief attorney to solve them. Here’s a listing of common situations that it’s recommended you don’t try to handle on your own:
- Multiple years of Unfiled Taxes and Unpaid Taxes– unfiled taxes is a serious issue. You could owe the IRS a large sum for unpaid taxes, late penalties and interest. It’s in your best interest to hire a tax resolution service or tax lawyer to help you find the best tax settlement method, which may involve installment agreement, an offer in compromise, or possibly a penalty abatement. If your tax returns are standard and without any complex issues, you could opt for a CPA or enrolled agent to help you file them to save money.
- Unable to Afford Payments Required Under an Installment Agreement– if after filing for an installment agreement to resolve unpaid back taxes it’s discovered you can’t afford the payment, a tax resolution service can help you. They’re knowledgeable in other types of tax relief options, can help determine your eligibility for an offer in compromise or financial hardship or partial payment agreement option.
- Tax Evasion– if you’ve been involved in a serious tax offense like tax evasion, you will need a tax attorney to deal with the IRS consequences of those actions. A tax attorney can help reduce your chance of serious penalties, which range from prison time to financial penalties. Sometimes, with the help of a tax relief attorney, you can have penalties removed if you have good reason for not staying within compliance of tax regulations.
- Involved in Tax Fraud– if you’ve claimed false deductions, understated or hid income intentionally, or anything else with the intention of committing fraud, you definitely need to get assistance from a tax resolution service or tax attorney. The tax attorney may be able to minimize your penalties and at the very least, understands how tax court works and will know the best approach for handling the situation.
- Tax Levy– if you have had your assets seized through a tax levy, you need to act quickly in order to minimize the financial impact. Tax attorneys can help stop the levy before your bank accounts, real estate, cars, and retirement accounts are affected, where as if you’ve reached a tax levy stage of tax collection and attempt to resolve it on your own, you will not get very far.
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Benefits of Using a Tax Professional
Benefits of using a tax professional when you have unpaid taxes. Complex IRS code often leave tax payers paying much more than they owed originally when they try to handle tax situations on their own.
How to Find a Reliable Tax Relief Professional
What to look for in a tax relief company before deciding to have them help you. Important types of solicitations and offers to look out for.
What Does a Tax Resolution Company Do?
Knowing and understanding what a tax resolution company does is crucial in making a decision to hire one. A tax resolution company offers many benefits that can greatly help taxpayers depending on their situation.
Understand How Power of Attorney Works
When using a tax professional to help you with your tax problem you must authorize them to act on your behalf. Understand how power of attorney works and understand exactly when it is needed.
Using a Tax Attorney to Help with Back Taxes
Benefits of using a tax attorney. What types of issues a tax attorney is particularly good at handling.
Using a CPA to Help with Back Taxes
Benefits of using a CPA. What types of issues a CPA is particularly good at handling.
Using an Enrolled Agent to Help with Back Taxes
Benefits of using an Enrolled Agent. What types of issues an Enrolled agent is particularly good at handling.
When to Use a Tax Relief Lawyer
Tax lawyers are the highest level of tax professional. Typically a tax lawyer is great for helping with more advanced, technical, and legal related tax issues and problems.